Toyota Motor remains the world’s largest automaker for the fifth consecutive year, selling 10.8 million vehicles in 2024. The company announced this on Thursday, despite a 3.7% drop in global sales due to problems in the domestic market, Reuters reports.
The main factor behind the decline in sales was the situation in Japan, where the company faced a crisis of confidence due to problems with certification tests, especially at its Daihatsu subsidiary. This led to a double-digit decline in domestic sales.
Volkswagen remains second, but also loses ground
Toyota’s competitors also failed to increase sales. Volkswagen Group, which ranks second in the global rankings, reported a 2.3% drop in sales, selling just over 9 million vehicles. The German group focused on cost cutting in Europe and fighting for market share in China, where a price war is ongoing.
Hybrids support Toyota’s global sales
Despite an overall decline in sales, Toyota sold a record number of vehicles thanks to strong demand for hybrids in the United States. The share of hybrid vehicles in total sales reached a record 40.8%, reflecting the growing interest in fuel-efficient solutions.
However, the company faced a 6.9% decline in sales in China, which was the result of fierce competition and aggressive dumping by local automakers.
Electric cars are not yet a priority
Despite the general trend towards electrification, Toyota is not yet relying on battery electric vehicles (BEVs): their share in sales in 2024 was only 1.4%. This indicates that the company continues to rely on hybrid technologies, which provide greater profitability and stability in sales.
Toyota remains a global leader, but challenges from a price war in China, regulatory issues in Japan and electric vehicle competition are forcing the company to look for new strategies. Demand for hybrids has so far rescued global sales, but electrification and market risks remain open.
